Service Leadership, an organization that consults with service providers and is well known for their data metrics and financial insights, has been purchased by ConnectWise. Deal terms have not been disclosed – the team from Service Leadership, including frequent speaker and company head Paul Dippell, become employees of ConnectWise.
Why do we care?
I’m biased, as I have known Paul a very long time and consider him a friend. I’m happy for him, and any entrepreneur, who gets value for an asset they built.
My take: the purchase is for SLIQ, their provider analysis tool, and for the data set. That’s the value.
Normally I don’t focus on acquisition of most companies, because a product is the same post acquisition as before.
Data has a different value. Paul and his team have very high ethical standards, and value is in that data. They have a high standard because the monetize trust. Now, there are new forces that could want to monetize that in other ways, and Paul is now an employee, not the owner and final decision maker.
So, I asked Paul directly about that. Here’s that answer.
“First, as you point out, Service Leadership’s reputation for confidentiality of data is one of the reasons we have been able to maintain our value and grow and succeed. We started the company with the pledge that no data gets released and that remains true and always will. We’ve always been able to anonymize and aggregate the data, and that benefits our partners because it allows us to leverage that data for more insights.
None of that will change, because that confidentiality of data is in ConnectWise’s best interest as well. In fact, Service Leadership will be part of ConnectWise’s new growth organization under Chris Timms for a very good reason: they already handle confidential, sensitive M&A data on a regular basis. So it’s the right team to be working with to continue to ensure data anonymity and privacy. They won’t be handing that data to their sales team. The only intent is to continue using the data for benchmarking purposes on an aggregate basis, to help partners understand how they’re doing and how they can get better.“
We care because of the transfer of trust. If you trusted Service Leadership based on their reputation, know that the responsibility is now transferred to ConnectWise. You will need to make that decision yourself, and that’s why we care.
You do have that promise as leverage, of course.
Source: Channel E2E